The national average home price is projected to rise 4.4% next year.

Homebuilding

Canadian home sales rise in September as CREA projects 6.6% increase in 2025

Canadian home sales rise in September as CREA projects 6.6% increase in 2025

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Canadian home sales rose by 1.9% in September 2024, marking the third consecutive month of growth following interest rate cuts by the Bank of Canada, according to the Canadian Real Estate Association (CREA). The gains, while modest, reflect the impact of rate reductions, with the highest activity recorded in major markets such as Toronto, Montreal, and Vancouver.

In September, the number of newly listed properties increased by 4.9% month-over-month, adding 185,427 homes to the market. Despite this rise, listings remain below historical averages. The national sales-to-new listings ratio dropped slightly to 51.3%, suggesting balanced market conditions.

CREA also reported a 2.1% year-over-year increase in the national average home price, reaching $669,630 in September. While prices edged up by just 0.1% month-over-month, they remain 3.3% lower than in September 2023, though the gap continues to shrink as the market stabilizes.

Looking ahead, CREA forecasts a stronger rebound in 2025, with home sales expected to climb by 6.6% to 499,800 units. The national average home price is projected to rise 4.4% next year, reaching $713,375, as more buyers return to the market amid anticipated interest rate cuts.